Mumbai: Petronet LNG Ltd and the Adani group have signed a joint venture (JV) agreement for building a solid cargo port at Dahej in Gujarat.The project, to be concluded in two phases, is likely to cost around Rs1,150 crore
The solid cargo port company, incorporated as Adani Petronet (Dahej) Pvt Ltd., will have a 50:50 initial equity participation for both the companies. The project will have a debt /equity ratio of 70:30.
The project is likely to be completed within a period of 36 months. The solid cargo port would have the facilities to import / export coal, steel, fertilizer, etc.
The first phase of the project would include one berth while the second phase would involve construction of two additional berths with full mechanisation of the port.
Land for the project has already been identified in the Dahej SEZ area next to the Petronet's LNG terminal.
The financial closure for the project is planned by the end of this year.
A joint venture company promoted by the GAIL (India) Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL), Petronet LNG is engaged in the import, storage and distribution of liquified natural gas (LNG) in the country.
The company has selected GAZ de France (GDF) as its strategic partner. Petronet has also signed LNG sale and purchase agreement (SPA) with Ras Laffan Liquefied Natural Gas Company Ltd, Qatar for the supply of LNG to India.
Petronet LNG Ltd has set up its first LNG terminal at Dahej in Gujarat with the capacity of five MMTPA and is in the process of setting up another terminal at Kochi in Kerala with the capacity of 2.5 MMTPA.